Page 13 - FINAL CFA II SLIDES JUNE 2019 DAY 2

LOS 7.f: Calculate and interpret the standard error
of estimate, the coefficient of determination, and a MODULE 7.3: HYPOTHESIS TESTS AND CONFIDENCE INTERVALS
confidence interval for a regression coefficient.

Standard error of estimate (SEE) the degree of variability of
the actual Y-values relative to the predicted Y (the smaller the
better the fit) (same calculation like standard deviation!)

2
COEFFICIENT OF DETERMINATION (R )

2
The % of the total variation in Y explained by X: R = 0.63 means 63% of the variation in Y is explained by X variation,
balance 27% either explained by residuals or a multiple regression equation (reading 8)

REGRESSION COEFFICIENT CONFIDENCE INTERVAL (RCCI)

H testing for this may use the CI for the coefficient being tested: H : b = 0 versus H : b ≠ 0.
a
1
0
1